Weekend Woes: Bitcoin spirals below $55k as geopolitical tension shakes crypto market

The crypto market decided to take a nosedive over the weekend, with Bitcoin taking the express elevator down to below $60,000 for the first time since July 13.

Observers took to X.com to blame the plummet on a cocktail of factors, including Israel’s bracing for potential attacks from both Iran and Hezbollah, with warnings of reported planned assaults as early as Monday.

Everyone is panick selling everything like it’s the end of the world. Well it’s not!#Bitcoin and the #crypto are down so bad like traditional stock market because people are so afraid of the #Israel – #Iran play. pic.twitter.com/47A3ZvoC3Q

— Block🔗c hained 🐻 (@HoMainman45244) August 5, 2024

Bitcoin (BTC) shed 10% of its value during the weekend, leaving it just shy of $55,000, according to CoinGecko. As of the last check, Bitcoin was having a sulk at $54,348.20, down a dramatic 9.6%.

Bitcoin 24-hour price chart for Aug. 3-4: Source: CoinGecko

Total liquidations over the past 24 hours spiked to a whopping $620 million, with 90% of those being longs, according to CoinGlass.

It’s safe to say, the crypto market had a rough weekend, with major assets like Ethereum (ETH) plunging more than 12.5% on the last check, causing more liquidations.

But it’s Bitcoin, in particular, which has been on a roller coaster as of late. The world’s largest cryptocurrency by market cap experienced a seven-day drop of almost 16%.

#Bitcoin Dumping reason#BTC #eth
•The US tipped off the G-7 that Iran might strike Israel within the next 24 hours, according to Axios.#Ethereum pic.twitter.com/uvmS93odnU

— Shofiul (@Shofiul3351716) August 5, 2024

Bitcoin reacts to global politics

Adding to the weekend news cycle, the Middle East conflict between Israel and Hamas is experiencing escalating tensions that threaten to spill over into a larger conflict, which could disrupt trade and send both domestic and global markets into a frenzy.

Also, former President and recent crypto convert Donald Trump’s path to reclaiming the White House took an unexpected detour when President Joe Biden decided to step aside and endorse Vice President Kamala Harris.

This political plot twist has Harris reaching out to mend ties with the crypto community and gaining ground in the polls.

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